Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter, free cash flow was negative, driven by an operating cash outflow and capital spending. Compared to the prior quarter, cash generation weakened, but relative to the same quarter last year, the deficit narrowed.
- Revenue was stable, but operating cash flow turned negative, resulting in a negative free cash flow margin. Capital expenditure was lower than the prior quarter.
- Free cash flow declined from a positive level in the previous quarter to a negative level, while it improved from a larger negative figure in the year-ago quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$304.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$123.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$106.6M
Cash generated by operations before capital spending.
CapEx
$16.6M
Capital spending and related asset purchases.
FCF margin
-12.0%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2022-06-30 | $1.1B | $306.8M | $22.4M | $284.4M | 26.7% |
| 2022-09-30 | $1.1B | $95.2M | $23.1M | $72.1M | 6.8% |
| 2022-12-31 | $1.0B | $92.8M | $22.0M | $70.8M | 7.1% |
| 2023-03-31 | $1.0B | -$106.6M | $16.6M | -$123.2M | -12.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -95.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Seasonal cash usage
The first quarter typically experiences cash usage due to seasonal demand, and management expects this to reverse in the second quarter.
The second quarter is expected to generate significant cash to fund operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow turned negative, resulting in a negative free cash flow margin. Capital expenditure was lower than the prior quarter.
Free cash flow declined from a positive level in the previous quarter to a negative level, while it improved from a larger negative figure in the year-ago quarter.
Monitor whether the seasonal cash usage reverses in the second quarter as indicated by historical patterns.